FHFA wants to boost mortgage access to low-income borrowers

by Ryan Smith02 Sep 2014
The Federal Housing Finance Agency says it wants Fannie Mae and Freddie Mac to provide more support for low-income borrowers.

The FHFA has released proposed goals for the mortgage finance firms as part of agency director Mel Watt’s initiative to increase access to housing, according to a Reuters report.

Under the new goals, Freddie would expand the number of loans it backs for low-income multifamily housing from this year’s goal of 200,000 to 230,000 in 2017, Reuters reported. Fannie and Freddie would also continue to ensure that low-income families made up 23% of their purchases of single-family home mortgages.

The proposed goals also call for Fannie and Freddie to increase the share of their mortgage refinancing to low-income Americans and increase the share of purchases backing mortgages in low-income areas with large minority populations, Reuters reported.

The goals are sure to cause a stir in Congress. Many Republican legislators blame Fannie’s and Freddie’s policies expanding mortgage access to poor borrowers for helping kick-start the financial crisis.



  • by Pat Anderson | 9/2/2014 9:55:05 AM

    WOW! What a great idea, bring back FNMA's My Community mortgage. $100.00 down. 500 credit score. 60% debt ratio. How can that hurt the housing market? I'm sure Frank and Dodd would both agree that this will work.

  • by G Montigny | 9/2/2014 9:58:07 AM

    Isn't this what caused the 2008 RE meltdown?
    Home ownership is not a RIGHT! It is something that you have to earn.

  • by Plain and Simple | 9/2/2014 11:17:24 AM

    Decent, safe and sanitary housing is a right. Home ownership is a priviledge.


Should CFPB have more supervision over credit agencies?